Trump Administration Taking On Overtime Pay, Franchise Liability

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The Trump administration plans to tackle two important labor policy issues in the coming months: overtime pay and “joint employer” liability for companies in staffing and franchise relationships.

Both items are on the administration’s new regulatory agenda for the next several months. The Labor Department plans to roll out updated overtime pay requirements (RIN:1235-AA20) by March. The DOL intends to propose a new rule (RIN:1235-AA26) on when businesses in staffing, franchise, and other arrangements share legal responsibility for any wage and hour violations by their partners as soon as December.

The National Labor Relations Board is also working on its own version of a final rule on joint employment. A proposal it released earlier this year would limit the circumstances in which affiliated companies are liable for unfair labor practices against—or required to bargain with—each other’s workers. The board said it will close the public comment period for the proposed rule in November.

The regulatory moves are likely to have a significant impact on businesses and their workers.